Firms Usage Of Performance Appraisal Systems Business Essay Example

basis for rewards, recognition, benefits, and salary increases. These methods can range from radical to orthodox approaches to performance assessment.

The implications of these assessments on designing performance assessment systems will be our focus. Performance assessment often acts as the central pillar of performance management. According to a 2004 survey conducted by Chartered Institute of Personnel and Development (cipd.co.uk), 65% of organizations used annual assessments while 27% used semi-annual assessments and 10% used rolling assessments. The reasons for conducting performance assessments may vary based on individual organizations' needs.According to the Work Place Employee Relationship Survey (WERS), 79% of workplaces conducted formal performance assessments. The prevalence was slightly higher in the public sector (83%) compared to the private sector (77%) (WERS). Armstrong and Baron (2004) found that 87% of respondents had a formal performance management process, with 65% planning to introduce this system within the next two years. According to an IRS survey, visible reasons for conducting performance assessments vary, but the ultimate goal is sustained organizational growth. The survey also revealed that 87% of administration uses performance assessment for training and development needs, while 82% use it to evaluate individual employee performance. Additionally, 32% use it to improve communication between supervisors and employees, and 19% use it for decision-making regarding performance rewards (IRS survey). This analysis of the surveys indicates that employers utilize performance assessment for multiple purposes (Stephen Bach, Managing Human Resources). Based on this study, reasons for conducting performance assessment include determining wage increases based on evaluations conducted throughout the year and using it as a tool for communication improvement and decision-making regarding rewards (Bach).Performance assessment is a crucial tool for organizations, as it

aids in promotions by analyzing performance through the appraisal process. This analysis allows management to make informed decisions about who should be promoted. Outstanding employees who have demonstrated exceptional performance throughout the year may be rewarded with a promotion.

Additionally, performance assessment provides fair and reliable judgments on employee performance. It helps organizations set goals and objectives for the upcoming year while assigning tasks, responsibilities, and authorities based on previous performance. This assists in enhancing employee performance, motivating them to achieve new goals, and determining whether they meet management's expectations.

Feedback plays an essential role in the assessment process as it enables employees to improve their performance by identifying strengths and weaknesses. Moreover, feedback also identifies training needs for personal development and improved job performance.

Many organizations conduct performance assessments using elements such as measurement, feedback, positive reinforcement, exchange of perspectives, and agreement. Measurement involves evaluating an individual's performance against predetermined goals and objectives. Feedback encompasses both positive aspects that highlight exemplary work as well as negative aspects that pinpoint areas needing improvement.

In summary, this text delves into various aspects of performance assessment techniques used for evaluating employee performance within organizations while highlighting its importance in promoting deserving individuals based on their outstanding achievements throughout the year.The text explains various techniques for performance assessment, which include Positive Reinforcement and Agreement. In Positive Reinforcement, workers are recognized for good work and improvements through open exchanges between the manager and employees to motivate and improve performance. Agreement is emphasized as a key element in problem-solving to ensure everyone is on the same page. The techniques for performance assessment mentioned are Graphic Evaluation Scale, Straight Ranking Method, Management by Objective, Field

Review, Critical Incidents, Essay Appraisal Methods, and 360-Degree Assessment. The Graphic Evaluation Scale measures performance levels from outstanding to unsatisfactory. The Straight Ranking Method compares one employee's performance with others to determine overall ranking. Management by Objective aligns goals between managers and employees for collaboration. Naukihub explains that field appraisal involves supervisors providing feedback on subordinates' performance as requested by department heads. Critical incidents methods analyze an employee's behavior in critical situations to provide feedback based on their reactions. This feedback can be positive or negative. Another widely used method is the 360-degree method in organizations (ehow.co.uk).Gathering feedback from clients, coworkers, and subordinates is essential in assessing performance. The employer's feedback is completed by the director. This method is widely used for performance assessment according to ehow.com. The 360-degree feedback allows employees to identify areas where their performance may be lacking, increasing self-awareness and leading to improved performance. It has multiple benefits that contribute to employee growth and continuous improvement in their work. One reason why this assessment is important is because it provides feedback from various individuals, making it more valid and easier to accept. The information gathered through this assessment method is used for further planning within the organization and creating an efficient appraisal framework that empowers employees to enhance their performance. Additionally, it facilitates direct communication between employees, co-workers, clients, and managers by facilitating feedback exchange. This type of assessment system is especially valuable for customer-oriented organizations as it also considers customer feedback in evaluating employee performance. Performance assessment significantly impacts employees' attitudes within any organization; a positive attitude leads to job satisfaction while a negative attitude can create an unhealthy team

environment.Various factors such as salary, promotion opportunities, aspirations, tangible benefits, needs, working conditions, colleagues, and supervisors influence employees' attitudes. Research studies (Nemoroff, journal of occupational psychology, Vol-52,25-34) have shown that when employees are given the opportunity to freely speak and discuss their performance assessment outcomes, they are more likely to feel satisfied and meet future performance goals. Bannister also emphasizes the importance of having an intelligent and trustworthy evaluator. When employees perceive the assessment process as accurate and fair, they are more likely to accept feedback and make necessary changes. Bannister suggests transparent assessments conducted in front of the employee to ensure accuracy and reasonableness. Including employees in their own performance assessment is crucial for building trust in the organization's evaluation process.

Orthodox and extremist reviews of public presentation assessment:

The use of performance assessment procedures is increasingly common among administrations as it helps motivate employees and achieve organizational goals. However, a question arises regarding whether the outcome should be influenced by personal biases of evaluators or driven by objective criteria and procedures.In Orthodox reviews, a doppelganger effect can be observed. This approach argues that there are flaws in the design and implementation of performance assessment. It relies on subjectivity as the assessment process lacks quantifiable measures and is qualitative. When managers evaluate an employee's performance based on their own perception rather than following a standardized process, it can lead to biased decisions. Additionally, managers may be burdened with multiple tasks such as performance evaluations, feedback provision, and training which further complicates the process. These administrative troubles can result in skewed results in the public performance assessment process.The text emphasizes the correlation between assessing managers and employees,

suggesting that similarities in attitudes and behaviors can be observed when reviewing performance assessment data. This indicates a tendency for managers to favor and reward employees who align with their own perspectives. Consequently, those who resemble the manager and achieve high scores on performance evaluations often receive rewards and recognition. The text also acknowledges that personal relationships may sometimes lead supervisors to display favoritism towards certain subordinates.

Additionally, the text delves into the negative consequences of favoritism and personal relationships within the workplace. It points out that such biases can result in cronyism, which has an impact on overall administration and undermines the performance of other employees. The author argues against orthodox reviews as they can demotivate employees, create issues of trust, misuse data, and complicate working procedures.

However, an alternative approach known as extremist reviews is introduced in the text. Extremist reviews follow objective rules and regulations for conducting performance assessments. They solely focus on evaluating an employee's performance, skills, and capabilities rather than personal connections or preferences.Extremist reviews are characterized by a data-driven approach where the director evaluates employees' performance based on recorded information. Employees, aware of the focus on preventing extremist attacks, adhere to the regulations set by the administration. Such assessments inspire discipline, proactivity, efficiency, and an ongoing search for innovative ways to prevent attacks within the organization.

This type of performance assessment ensures objectivity and transparency in the working environment as it relies on factual data. Regular updates to the evaluation data eliminate disagreements or delays in recording employee performance. The reliability of extremist reviews is enhanced by feedback provided by managers being accepted and trusted, fostering open discussions between them. These discussions

serve as motivation for employees to improve themselves and work efficiently towards personal and organizational goals.

The risk of biased decision-making is minimized since managers are required to support their decisions with data and cannot exhibit favoritism. As performance analysis is solely based on practicality, management retains full control over employee behavior and work patterns.This standardized working platform minimizes conflicts, disputes, and resistance among employees. It encompasses regulations, forms, working conditions, and goals in the performance assessment process for a group of employees (Category notes; Ortho & Redcl PDF). The effectiveness of the performance assessment process is sometimes questionable because it remains unclear if it benefits both the manager and employee. This uncertainty stems from the fact that one person decides on the evaluation form and appraisal methods (Orthdx & Ruddy PDF). In extremist reviews, there is an expectation that both the manager and employee should have a consistent reaction to appraisal evaluations. This assumption is based on relying on recorded data and facts throughout the entire performance assessment process (Category notes).

Decision

Considering the above discussion, it becomes apparent that performance assessment plays a crucial role in an organization's growth strategy. There are several visible reasons for conducting performance assessments, including enhancing employee satisfaction (evidenced through promotions and salary increases), initiatives aimed at boosting productivity (such as training and skill development), and fostering improved communication channels (through 360° feedback).Performance assessments play a significant role in shaping employees' attitudes towards their work and the organization. When conducted effectively, these assessments can motivate employees and improve their performance. However, poorly conducted assessments can have negative consequences by creating a hostile environment.

In cases where employees are dissatisfied with the assessment

and feedback provided by their supervisors, they may react negatively. This can lead to demotivation, pessimistic thinking, and wasted time spent on attempting to correct management and policies. It may also result in conflicts as employees question various aspects of management such as work methods, approach, policies, attitude, and strategies.

To ensure effective performance evaluations, organizations must consider both quantitative and qualitative approaches (Orthodox & Radical review). The combination of these approaches may vary depending on the industry sector or department within an organization. For example, a process-driven organization might give more importance to the quantitative approach while a sales-oriented organization might require a balance between both approaches due to its direct impact on sales productivity.

Overall, conducting performance assessments correctly is crucial for organizations to achieve their goals while maintaining employee satisfaction.